Your costs are going up!

Our Leadership Communications Program is filled with account and project managers, people who have to communicate things they don’t always agree with or don’t have control over.

One example: having to tell a client that the scope of work has changed and their cost is going up.

Here’s an approach to make this negotiation easier.

If it’s on them, say so

If the scope has increased because the client asked for more work, sooner, or other things not in your agreement, you should say so.

Remember is the triple constraint of project management…

Image by Wellingtone

On all projects, time, cost, and quality are always inextricably related to each other. Do they want it sooner? It will either cost more or be lower quality / have fewer features (or both). Dot hey want to add features or labor? No problem, but they need to know it will be more expensive or take longer (or both).

But I still have to say it!

Even when costs increase because of the client, it’s still the account manager’s responsibility to initiate that awkward conversation. If you don’t, they’ll keep asking for more. And you’ll keep being resentful.

In our program, we train new managers to first prepare, then take it step by step.

Step 1 - Broach the subject

“Can we talk about the growing project scope and costs?” This lets them know something’s coming. No one likes surprises.

Step 2 - Layout the facts

“Over the course of the project, we have added several features/tasks at your request.”

It’s important here to not use judgmental language like, “You keep adding…” or “you’re stressing us out!” Just state the facts objectively.

Let them see the value for the extra cost.

Step 3 - Don’t take away their power

At some point in the conversation, you’ll need to make a direct request. You can do it in a way that (at least seemingly) maintains their control over the situation.

“We’ve calculated it will cost $X to deliver these extra features. Are you OK with that?”

Or…

“We could give you an itemized list of costs, so you can decide which you want to include.”

Or…

“I know this is a lot, do you want to review all the features to see where we could cut costs?”

You’ll get farther by searching for mutual objectives, rather than making someone feel they’ve lost their power.

Prevent this problem in the first place

Even better than having this big, difficult conversation is to set little boundaries the first time and every time they ask for more than the original agreement.

You can say something like: “That’s a great idea. Let me get back to you with the additional cost.”

If you do this early on in your relationship, they won’t come to expect more for less.